Basic needs, government debt and economic growth

Perlo-Freeman, Samuel; Webber, Don J.

Abstract

This paper investigates the relationships between basic needs and economic growth where the interactions between output, health, nutrition and education are explicitly simultaneous. We find a unidirectional relationship that improving basic welfare contributes strongly to labour productivity change, but a clear reverse causation only from growth to nutrition. There are substantial differences in the patterns of simultaneous interactions at different income and welfare levels. There are strong self-reinforcing effects of literacy and debt service on poverty, making it difficult for poor countries to rectify their situation. Channelling resources towards improving health, education and nutrition could bring dramatic economic returns. © Journal compilation © 2009 Blackwell Publishing Ltd.

Citation

Perlo-Freeman, S., & Webber, D. J. (2009). Basic needs, government debt and economic growth. World Economy, 32(6), 965-994. https://doi.org/10.1111/j.1467-9701.2009.01181.x

• Journal Article Type: Article
• Publication Date: Jun 16, 2009
• Deposit Date: Nov 2, 2011
• Journal: World Economy
• Print ISSN: 0378-5920
• Electronic ISSN: 1467-9701
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 32
• Issue: 6
• Pages: 965-994
• DOI: https://doi.org/10.1111/j.1467-9701.2009.01181.x
• Keywords: income, health, education, nutrition, government debt, womens’ education
• Public URL: https://uwe-repository.worktribe.com/output/1005033
• Publisher URL: http://dx.doi.org/10.1111/j.1467-9701.2009.01181.x